BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2796           Hearing Date:    6/28/2016
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          |Author:   |Bloom                                                 |
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          |Version:  |4/4/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Erin Riches                                           |
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          SUBJECT:  Active Transportation Program


            DIGEST:  This bill establishes a permanent set-aside in the  
          Active Transportation Program (ATP) for planning and  
          non-infrastructure projects.

          ANALYSIS:
          
          The ATP was established under the state Department of  
          Transportation (Caltrans) pursuant to the 2013-14 budget  
          agreement.  The ATP consolidated part or all of several existing  
          programs and accounts, including the state Bicycle  
          Transportation Account, the state and federal Safe Routes to  
          Schools (SRTS) programs, the federal Transportation Alternatives  
          Program, and the state Environmental Enhancement and Mitigation  
          Program.  These programs and accounts totaled approximately $130  
          million per year.  The budget agreement directed funds to be  
          awarded by the California Transportation Commission (CTC)  
          through a competitive process to urban regions (40%), small  
          urban and rural regions (10%), and statewide (50%).    

          The budget agreement directed the CTC to develop program  
          guidelines in consultation with a designated ATP working group.   
          It directed that a minimum of 25% of overall ATP funds must  
          benefit disadvantaged communities (DACs).  It also guaranteed  
          SRTS at least $24 million per year, for three years; of this  
          amount, a minimum of $7.2 million was to be available for  
          non-infrastructure program needs, including the continuation of  
          technical assistance by the state.  







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          The 2017 ATP guidelines adopted by the CTC earlier this year  
          cover fiscal years 2019-20 and 2020-21; projects will be adopted  
          early next year.  The 2017 guidelines set aside a maximum of 2%  
          of funds in the statewide component, and in the small urban and  
          rural component, for active transportation plans in DACs.  A  
          large metropolitan planning organization may set aside up to 2%  
          of its funding for active transportation plans in DACs.  

          This bill:

          1)Requires, for each category (urban, small urban and rural, and  
            statewide), at least 5% of funds to be awarded for planning  
            and community engagement for active transportation in DACs.  

          2)Requires, for each category, at least 10% of funds to be  
            programmed for non-infrastructure activities, including  
            activities related to SRTS.  If a project includes both  
            infrastructure and non-infrastructure components, only the  
            portion used for non-infrastructure shall count toward the  
            10%.

          3)Requires that if applications submitted in a funding cycle are  
            not sufficient to exceed the minimum percentages required, the  
            applicable funds may be spent for other authorized purposes.

          COMMENTS:

          1)Purpose.  The author states that this bill aims to address the  
            competitive disadvantage of planning and non-infrastructure  
            projects in the ATP grant process, which has discouraged  
            under-resourced jurisdictions from applying for these grants.   
            This bill seeks to create a funding ratio that more accurately  
            reflects the proportion of applications for planning and  
            non-infrastructure projects relative to infrastructure  
            projects.  Specifically, the author states that this bill  
            enables planning and non-infrastructure projects to compete  
            fairly in ATP by designating a set-aside for them.    

          2)Background.  This committee was closely involved in the  
            negotiations to establish the ATP in the 2013-14 budget  
            agreement.  The working group conducted extensive discussions  
            about how large a set-aside to create for SRTS and for  
            planning and non-infrastructure projects.  The compromise  
            eventually reached was to set aside a minimum of $24 million  








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            for SRTS for three years, with a set-aside within SRTS of at  
            least $7.2 million for non-infrastructure program needs.  This  
            bill establishes a permanent set-aside of 15% in each of the  
            three categories, of which 10% is allocated to  
            non-infrastructure activities (including SRTS) and 5% is  
            allocated to planning activities.  

          3)Where are we now?  The author states that the CTC and Caltrans  
            have put particular emphasis in the first two grant cycles on  
            funding infrastructure grants, and that non-infrastructure and  
            planning proposals have struggled to compete.  The author  
            states that in the first grant cycle, roughly 8% of overall  
            funding went to planning and non-infrastructure grants, while  
            in the second cycle, less than 5% of program funds went to  
            grants of this type.  The author states that planning is a  
            huge need for active transportation, particularly in  
            low-resourced communities.  According to the author,  
            non-infrastructure activities are critical to engage and  
            excite residents to walk and bike more, as car-free street  
            events like CicLAvia and programs like SRTS have demonstrated.  
             However, the most recent guidelines adopted by the CTC reduce  
            the non-infrastructure set-aside to 2%.    

          4)What are planning and non-infrastructure activities?  Planning  
            funds assist communities to, for example, create a local  
            bicycle or pedestrian plan, while non-infrastructure  
            activities often comprise a component of an infrastructure  
            project.  One of the larger solely non-infrastructure  
            allocations in the 2015 funding cycle was for $966,000 in  
            2016-17 to the San Mateo County Office of Sustainability for  
            its Sustainable Transportation Encouragement Project (STEP).   
            According to the application, STEP will be implemented by a  
            partnership between the office and Redwood City 2020, a  
            community collaborative which includes Redwood City School  
            District.  The application states a need for outside grant  
            funding due to a 40% cut in funding to the SRTS program, which  
            is forcing them to cut back "education and encouragement  
            services."  

          5)A big piece of a small pot.  The ATP is funded at  
            approximately $120 million per year and programmed in  
            four-year cycles.  The bulk of program funding comes from the  
            federal FAST Act.  The ATP is extremely popular; in the second  
            cycle, awarded in 2015, more than 600 applications were  
            submitted, requesting over $1 billion in funds.  Approximately  








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            200 projects were awarded a total of $359 million.  With  
            demand exceeding supply by so great an amount, the question  
            arises of whether a smaller set-aside might help focus limited  
            funds on infrastructure projects.  

          6)Making planning a priority.  Writing in support of this bill,  
            a coalition of bicycle and pedestrian organizations state  
            that, "The vast majority of communities across the state lack  
            walk, bike, or active transportation master plans, and rely on  
            grants from the ATP to develop plans that help them identify  
            and build community support for future projects."  According  
            to the Office of Planning and Research's 2013-14 Annual  
            Planning Survey Results, less than 50% of responding cities  
            and counties reported having adopted a Bicycle Master Plan and  
            only about 13% of respondents reported a Pedestrian Master  
            Plan.  This dearth of master plans raises the question of  
            whether a larger set-aside for planning may be appropriate.   
          
          7)Opposition arguments.  The CTC has taken an "oppose unless  
            amended" position on this bill.  The CTC writes that "while  
            the Commission acknowledges the value in non-infrastructure  
            active transportation projects, particularly those that are  
            combined with infrastructure projects, it has had difficulty  
            implementing grants awarded for those purposes."  The CTC  
            states that statutory funding and program requirements and  
            restrictions have led to frustration and time-consuming  
            disputes between Caltrans and applicants regarding  
            non-infrastructure projects.  The CTC notes, however, that  
            this difficulty might be mitigated through clearer legislative  
            guidance on the types of non-infrastructure guidance eligible  
            for ATP funds.  
          
          8)Amendments.  To address some of the concerns outlined in the  
            comments above, the author will accept the following  
            amendments in committee:

             a)   Add legislative intent language relating to the goals of  
               the ATP.

             b)   Specify that planning and construction of walking and  
               biking infrastructure and implementation of  
               behavioral-change strategies are part of the mission of the  
               ATP.

             c)   Revise the planning and non-infrastructure set-aside to  








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               comprise 10% of total available ATP funds.  Of the  
               set-aside, at least 50% must be designated for planning  
               activities to develop comprehensive active transportation  
               master plans, including for community engagement activities  
               to engage residents in relation to these plans.  Funding  
               programmed for the ATP Resource Center at Caltrans shall  
               not count toward the 10%.

             d)   Allow an applicant to seek CTC approval of a letter of  
               no prejudice allowing the applicant to spend its own funds  
               for a project programmed in a future year and to be  
               reimbursed later by the CTC.

             e)   More clearly define non-infrastructure activities.

          Related Legislation:
          
          SB 99 (Committee on Budget and Fiscal Review, Chapter 359,  
          Statutes of 2013) and AB 101 (Committee on Budget and Fiscal  
          Review, Chapter 354, Statues of 2013) - created and funded the  
          ATP.  
           
          Assembly Votes:
          
            Floor:    78-1
            Appr:     20-0
            Trans:    16-0
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 22, 2016.)
          
            SUPPORT:  

          California Bicycle Coalition (co-sponsor)
          California Walks (co-sponsor)
          Safe Routes to School National Partnership (co-sponsor)
          American Heart Association/American Stroke Association
          American Lung Association in California
          Amigos de los Rios
          Bike East Bay
          Bike Santa Cruz County








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          Bike SLO County
          Breathe California
          California League of Conservation Voters
          California Pan-Ethnic Health Network
          California ReLeaf
          Catholic Charities, Diocese of Stockton 
          Center for Climate Change and Health
          Chico Velo
          Coalition for Clean Air
          Comite Civico del Valle
          County Health Executives Association of California
          Gamaliel of California
          Health Officers Association of California
          Inland Empire Biking Alliance
          Leadership Counsel for Justice and Accountability
          Livable Communities, Inc.
          Los Angeles County Bicycle Coalition
          Marin County Bicycle Coalition
          Move LA
          Napa County Bicycle Coalition
          PolicyLink
          Public Advocates, Inc.
          Rails-to-Trails Conservancy
          San Diego County Bicycle Coalition
          San Francisco Bay Area Rapid Transit District
          Santa Barbara Bicycle Coalition
          Silicon Valley Bicycle Coalition
          The Environmental Council of Sacramento
          Trust for Public Land
          Walk San Francisco

          OPPOSITION:

          California Transportation Commission

          
          

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